Kupe replaces 1 for 2 issue

Press, 12 October 1988, Page 35

Kupe replaces 1 for 2 issue

Kupe Group has cancelled its proposed one-for-two cash issue and substituted a one-for-six cash issue. In August, the Auckland-based property developer’s shares were suspended when it announced that the proposed one-for-two cash issue of ordinary 50c shares had been postponed. The Stock Exchange suspended the issue because it wanted more details on why the one-for-two issue had been proposed. Kupe said at the time that it was delaying the issue for 30 days to allow the new directors of Euro-National Corporation, which owned 42 per cent of Kupe, time to become acquainted with the property developer’s business. Kupe was later reinstated. The proposed one-for-six issue of ordinary shares at 50c par will raise $11.2M, one-third of the amount that Kupe was initially seeking.

Kupe said in a statement yesterday, that the new issue was proposed after discussions with EuroNational. The new issue will be one partly paid ordinary share for every six ordinary shares held. The payments will be 5c on subscription, 25c on October 1, 1990, and 20c on October 1, 1991. The issue would be fully underwritten by EuroNational and Government Life Insurance Corporation. The Kupe directors said they were pleased that the issue had received the support of its major shareholders. The issue would strengthen shareholders’ funds, and with other funding arrangements being finalised, ensure the success of the company’s main projects, they said. The shares will be quoted ex-entitlement and rights trading will begin on October 31.